Week 19 in Manufacturing News

U.S. manufacturing contracts further in April: IHS Markit; U.S. Factories Face a Hitch in Reopening; UK economy starting 2020 in ‘stagnation’ and uncertainty, British Chambers of Commerce warn; Back-to-Work Protocol for Manufacturers Post-COVID-19.

U.S. manufacturing contracts further in April: IHS Markit

The U.S. manufacturing sector’s contraction accelerated in April, with activity sinking to an 11-year low as strict measures to slow the spread of the novel coronavirus weighed on demand and fractured supply chains, a survey confirmed on Friday.

Data firm IHS Markit said its final U.S. manufacturing Purchasing Managers’ Index dropped to a reading of 36.1 last month, the lowest reading since March 2009. That was a downward revision from the ‘flash’ figure of 36.9 reported last week and lower than 48.5 published in March.

U.S. Factories Face a Hitch in Reopening

U.S. manufacturers preparing to resume production after a month of lockdowns are returning to work without a reliable supply of parts from plants in Mexico, a majority of which remain idled by restrictions there to slow the spread of the coronavirus.

Mexico exported $358 billion worth of goods to the U.S. last year, surpassing China as the nation’s largest trading partner. But many subsidiaries and suppliers of parts or finished goods to U.S. manufacturers remain closed by the order of Mexico’s Health Ministry.